Commentary in state-run news agency says ‘Chinese investment is not a Trojan horse’ after US president stopped takeover of Lattice Semiconductor
It was “unwise” for US President Donald Trump to stop a Chinese firm from acquiring an American semiconductor company this week, according to official news agency Xinhua.
The state news outlet said in a commentary on Saturday that “Chinese investment is not a Trojan horse” and that Trump’s decision to block a deal was “penny wise and pound foolish”.
It did not directly name the deal. Trump issued an order on Wednesday to stop a US$1.3 billion takeover of Portland-based Lattice Semiconductor by Canyon Bridge Capital Partners – a private equity firm backed by China Venture Capital Fund – on the grounds that it was a national security risk.
Trump blocks Chinese takeover of US chip maker on national security grounds
“Security reviews of investments in sensitive sectors are the legitimate rights of all countries, but that power should not be used as a tool to implement protectionism,” Xinhua said.
The US government has been sensitive to Chinese acquisitions in recent years, particularly sectors in the hi-tech industry such as telecoms and chip makers that it deems critical to national security.
